Influential Wall Street mutual fund manager Bill Miller believes that most altcoins are worthless, but thinks that Bitcoin has the potential to disrupt multiple markets, including gold.
In a recent interview with Bloomberg, Miller provided more insights into his current positions within the digital asset market after first revealing he invested 1% of his net worth into bitcoin in 2014 last December.
I have Bitcoin in a partnership that I run and I also have a pretty significant position individually with an average cost of $300 in Bitcoin.
Miller states that he sees the entire crypto industry as an “interesting technological experiment,” and that no one knows what will come of it. However, he emphasizes that Bitcoin offers a relatively de-risked investment opportunity with significant upside, due in large part to its potential utility as a store of value and unit of payment.
At this point, the best way to think about Bitcoin is as a non-correlated asset most similar to gold, except its much more easily transportable than gold, it can actually be used to buy things.
Interestingly, Miller sees Bitcoin as “much less risky” now than it was when it was $100, stating that every day it doesn’t go to zero, due either to regulations or market volatility, the stronger the investment becomes. He notes that all other cryptocurrencies, outside of perhaps ether, are far less enticing as an investment opportunity, going as far as calling them “worthless”.
Miller is well-known for his streak of beating the S&P 500 for 15 straight years from 1991 to 2005 while running the Legg Mason Value Trust. He currently acts as the chairman and chief investment officer of Legg Mason Capital Management.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.